According to a report by administrators Alexander Lawson Jacobs, filed this month and seen by TTG, the company’s business and assets have been transferred to a connected company Ocean Holidays, which will assume all liabilities “with the exception of those relating specifically to the alleged fraud”.
This incident left the TTA’s indemnity insurers AIG as a creditor of Como Street Travel Ltd, “for circa £1.1 million”, the report said.
At the time the company underwent a restructure sparked by the departure of a former employee who left the business in October 2012.
In a statement TTA and Ocean Holidays said: “Following his departure, a substantial loss was discovered in the Como Street Travels TTA Trust Account of in excess of £1million. The nature of the deficit is still under investigation with the potential of fraud.”
To plug the deficit the management team at Como Street raised funds through the sale of beatthebrochure.com, which at the time (at the end of 2012), represented around 50% of the firm’s revenue.
More than 20 redundancies were also made at the time but a number of these individuals have since been reinstated as the business began to grow again.
The new management team comprises Daniel Ox, David Ox, George Hastings and Harry Hastings. All have an equal shareholding in the new company.
Joint managing director Harry Hastings said: “Businesses that have unexpected events or change forced upon them are in the best position to quickly become stronger and leaner.
“This has clearly been challenging for us, however we have embraced our restructure and are excited for the future of Ocean Holidays with material organic growth in revenue forecast, achieved in a carefully planned and monitored five year plan.”
Gary Lewis, group managing director at The Travel Network Group, said: ” This is a classic case of how the TTA works with its members when they encounter challenges.
“With 100% financial protection to our business partners and consumers this business has overcome the difficulties it faced two years ago and is now going from strength to strength. Ocean Holidays is today trading as a TTA and Atol member.”
Como was incorporated in June 2002 under the name Caribbean Sunshine Ltd. It then changed its name and started trading as a travel agent and tour operator.
